Company Report: StarMedia Falls on Downgrade and Datalink.net Soars After Split

Dell gained 3 1/2, or 6.8%, to 54 3/4, while Ariba shed 7 3/8 to 298. Dell said that the company's growth is returning after the Y2K slowdown and the fourth-quarter component problems.

Earlier today, Banc of America Securities and Bear Stearns upgraded Dell. Banc of America upgraded Dell to strong buy from buy. Bear Stearns upgraded Dell to buy from attractive.

Tribune (TRB Quote - Cramer on TRB - Stock Picks) dropped 6 3/8, or 17.1%, to 30 13/16 after it said it is buying Times Mirror (TMC Quote - Cramer on TMC - Stock Picks). Times Mirror soared 37 11/16, or 78.6%, to 85 5/8. Tribune is the publisher of the Chicago Tribune, and also owns numerous television stations in addition to the Chicago Cubs Major League Baseball franchise. Times Mirror is publisher of the Los Angeles Times and Newsday. Following completion of the deal, Tribune Company will have 11 daily newspapers, 22 television stations and four radio stations.

Credit Suisse First Boston downgraded Tribune to hold from buy.

Mergers, acquisitions and joint ventures

CoreComm Limited (COMM Quote - Cramer on COMM - Stock Picks) climbed 1 1/8 to 49 after it said it is buying Voyager.net (VOYN Quote - Cramer on VOYN - Stock Picks) for about $540 million in cash and stock. Voager.net gained 1 5/8, or 12.5%, to 14 5/8.

E*Trade lost 3/4 to 25 3/4 after it said it is buying Card Capture Services, the largest independent network of centrally managed automated teller machines in the United States. Terms of the deal weren't disclosed.

General Motors (GM Quote - Cramer on GM - Stock Picks) was unchanged at 77 13/16 after it and Fiat said they formed a strategic industrial alliance. General Motors will buy a 20% stake in Fiat for $2.4 billion in GM stock. GM also said it will buy back $2.4 billion of its common stock by the end of the year and said it increased its Hughes (GMH Quote - Cramer on GMH - Stock Picks) exchange offer to $9 billion from $8 billion. Hughes lost 1 7/16 to 128 1/4.

IBM (IBM Quote - Cramer on IBM - Stock Picks) said it is teaming up with Cisco (CSCO Quote - Cramer on CSCO - Stock Picks), Ericsson (ERICY Quote - Cramer on ERICY - Stock Picks), Intel (INTC Quote - Cramer on INTC - Stock Picks), Motorola (MOT Quote - Cramer on MOT - Stock Picks), Nokia (NOK Quote - Cramer on NOK - Stock Picks), Palm (PALM Quote - Cramer on PALM - Stock Picks), Symbian and others to supply products and services to bring e-business applications to wireless devices. IBM gained 2 1/4 to 107 1/2, Cisco slipped 3/16 to 136 3/16, Ericsson dropped 3 5/16, Intel rose 1 15/16 to 122 1/8, Motorola moved down 8 1/2 to 166 3/8, Nokia slipped 7/8 to 214 1/8 and Palm fell 5 11/16, or 8%, to 64 5/16.

i2 Technologies (ITWO Quote - Cramer on ITWO - Stock Picks) shed 16 13/16, or 8.1%, to 191 3/16 after it said it is buying Aspect Development (ASDV Quote - Cramer on ASDV - Stock Picks) for $9.3 billion. Aspect Development popped 11 13/16, or 13.9%, to 96 13/16. According to the terms, i2 would swap 0.55 share for each Aspect share after Aspect's 2-for-1 stock split. After the merger is completed, Aspect shareholders will own 18% of the company.

Separately, i2 said it has entered a $280 million stock deal to acquire closely held Supplybase. i2 said the deals would not effect fiscal 2000 cash earnings but would contribute to the fiscal 2001 report.

L-3 Communications (LLL Quote - Cramer on LLL - Stock Picks) lost 5/8 to 43 15/16 after it said it is buying the Traffic Alert and Collision Avoidance System product line from Honeywell (HON Quote - Cramer on HON - Stock Picks) for $255 million. Honeywell slipped 3/4 to 44 5/8.

Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks) moved down 3 to 98 after it and Andersen Consulting agreed to a $1 billion pact to form a joint venture called Avenade, a technology services firm that will employ 5,000 and contribute to building Internet businesses using Microsoft software.

Pitney Bowes (PBI Quote - Cramer on PBI - Stock Picks) lost 3/16 to 45 15/16 after it said it formed an alliance with a unit of Siemens AG to provide messaging solutions. Pitney Bowes and Siemens will provide software, hardware and Web-based applications that reduce processing time, speed access and prioritize the delivery of important mail and messages.

Radio One (ROIA Quote - Cramer on ROIA - Stock Picks) lost 2 5/16 to 63 7/16 after it said it will buy 12 stations from Clear Channel (CCU Quote - Cramer on CCU - Stock Picks) for $1.3 billion and three stations from Shirk for $40 million. Radio One will also buy Davis Broadcasting for $24 million Clear Channel lost 1/8 to 62..

Texas Utilities (TXU Quote - Cramer on TXU - Stock Picks) inched up 1/16 to 26 11/16 after it said it was launching an offer for Spanish utility Hydroelectrica del Cantabrico for 21.25 euros ($20.54) a share, or 2.4 billion euros ($2.32 billion).

Tommy Hilfiger (TOM Quote - Cramer on TOM - Stock Picks) is believed to be in talks to buy all or part of privately owned Calvin Klein, The Sunday Telegraph in London reported. Calvin Klein could be valued at $1 billion, the newspaper said. Tommy Hilfiger edged up 0.7%, to 13 9/16.

Ventro (VNTR Quote - Cramer on VNTR - Stock Picks) shed 19 5/16, or 10.7%, to 162 and Webmethods (WEBM Quote - Cramer on WEBM - Stock Picks) lifted 17 1/2, or 7.5%, to 250 after the companies said they entered a software deal.

Earnings/revenue reports and previews

Anixter (AXE Quote - Cramer on AXE - Stock Picks) jumped 4 7/16, or 22.5%, to 24 1/8 after it said it expects first-quarter earnings to exceed estimates by 15% to 20%. The company said it expects earnings between 38 cents and 40 cents a share, compared with the year-ago earnings of 19 cents. The current two-analyst estimate is for 34 cents a share.

B/E Aerospace(BEAV Quote - Cramer on BEAV - Stock Picks) lost 1 9/16, or 17.4%, to 7 7/16 after it warned investors that it would post a fourth-quarter loss of $10 million. The eight-analyst estimate expected B/E to report a 37-cent profit.

Progressive (PGR Quote - Cramer on PGR - Stock Picks) lost 1/2 to 49 1/4 after it said its first-quarter earnings would fall below estimates. The current 14-analyst estimate calls for earnings of 50 cents a share.

Offerings and stock actions

Celgene (CELG Quote - Cramer on CELG - Stock Picks) lost 5 1/2 to 163 after it set a 3-for-1 stock split.

Commerce One's (CMRC Quote - Cramer on CMRC - Stock Picks) shed 7 9/16 to 250 after its board approved a 2-for-1 stock split.

Datalink.net (DLK Quote - Cramer on DLK - Stock Picks) added 14 1/16, or 27%, to 66 after it set a 2-for-1 stock split.

Luxottica (LUX Quote - Cramer on LUX - Stock Picks) gained 1/16 to 23 11/16 after it said it plans a 2-for-1 stock split and will apply for listing on the Milan Stock Exchange by the end of 2000.

Nortel Networks(NT Quote - Cramer on NT - Stock Picks) declined 1 3/4 to 121 11/16 after he said it plans to spin off its Netgear division as a separate company. Nortel said that Pequot Capital would take a $15 million stake in the new company.

J.P. Morgan said Sony (SNE Quote - Cramer on SNE - Stock Picks) will split its ADRs 2-for-1. Sony sank 18 1/4, or 7.4%, to 225 1/2.

Analyst actions

Merrill Lynch reinstated Broadwing (BRW Quote - Cramer on BRW - Stock Picks) with a near-term accumulate, long-term buy and a 12- to 18-month price target of 50. Broadwing stumbled lost 1 9/16 to 37 3/8.

PaineWebber raised its 12-month price target on Calpine (CPN Quote - Cramer on CPN - Stock Picks) to 150 a share. Calpine fell 6, or 5.4%, to 105.

Credit Suisse First Boston cut its rating on Chiron (CHIR Quote - Cramer on CHIR - Stock Picks) to buy from strong buy. Chiron plummeted 14 3/16, or 23.6%, to 45 3/4.

Donaldson Lufkin & Jenrette added Compaq (CPQ Quote - Cramer on CPQ - Stock Picks) to its value list. Compaq edged up 1/8 to 28 11/16.

Deutsche Banc Alex. Brown started coverage of Diversa (DVSA Quote - Cramer on DVSA - Stock Picks) with a buy rating and a 157 price target. Diversa tumbled 9 7/8, or 9.7%, to 91.

Thomas Weisel analyst Doug van Dorsten started coverage of Eloquent (ELOQ Quote - Cramer on ELOQ - Stock Picks) with a buy rating and a 12-month price target of 60. Eloquent slipped 2 7/8, or 7.2%, to 36 5/8.

Warburg Dillon Read analyst Claire Nickson-Havens raised her rating on eSpeed (ESPD Quote - Cramer on ESPD - Stock Picks) to strong buy from buy and boosted the price target to 100 from 80. eSpeed popped 8 1/8, or 10.8%, to 82 7/8.

J.P. Morgan set a 12-month price target for FleetBoston Financial (FBF Quote - Cramer on FBF - Stock Picks) at 38. FleetBoston Financial added 7/16 to 26 1/8.

Robertson Stephens upgraded Intel (INTC Quote - Cramer on INTC - Stock Picks) to strong buy from buy. Intel bounced 1 15/16 to 122 1/8.

Jefferies said it started coverage of Juno Online (JWEB Quote - Cramer on JWEB - Stock Picks) with a buy rating and a 12-month price target of 40. Juno Online hopped 3 1/8, or 15.7%, to 23.

Alex. Brown upgraded Knight/Trimark (NITE Quote - Cramer on NITE - Stock Picks) to strong buy from buy. Knight/Trimark climbed 2 1/2, or 5%, to 52 1/16.

DLJ said it raised Kohl's (KSS Quote - Cramer on KSS - Stock Picks) to buy from market performer. Kohl's advanced 1 9/16 to 84 11/16.

SG Cowen said it started coverage of Landacorp (LCOR Quote - Cramer on LCOR - Stock Picks) as a strong buy. Landacorp tacked on 2 1/8, or 15%, to 16 1/14.

Merrill Lynch said analyst Michael Hughes started coverage of Lending Tree (TREE Quote - Cramer on TREE - Stock Picks) with a near- and long-term buy rating and a 12- to 18-month price target of 33. Lending Tree gained 13/16, or 5.7%, to 14 7/8.

Wit SoundView upped its rating on Lucent(LU Quote - Cramer on LU - Stock Picks) to buy from hold and set a price target of 90. Lucent skidded 1 3/4 to 66 1/4.

Thomas Weisel analyst Keith Gay initiated coverage on VarsityBooks.com (VSTY Quote - Cramer on VSTY - Stock Picks) with a buy rating. VarsityBooks.com declined 7/16 to 9 3/8.

Salomon Smith Barney downgraded StarMedia Network (STRM Quote - Cramer on STRM - Stock Picks) to neutral from buy. StarMedia Networks plummeted 17 1/4, or 34.5%, to 32 3/4.

PaineWebber sliced its rating on Suiza Foods(SZA Quote - Cramer on SZA - Stock Picks) to attractive from buy and cut its price target to 42 from 51. Suiza Foods tumbled 1 3/8 to 37 5/16.

Merrill Lynch analyst Robert Schenosky started coverage of Weirton Steel (WS Quote - Cramer on WS - Stock Picks) with a rating of accumulate for the intermediate term and buy for the long term. Weirton Steel declined 1/8 to 9 1/2.

Miscellany

Excite@Home (ATHM Quote - Cramer on ATHM - Stock Picks) hopped 1 5/16 to 29 7/8 after it said it will launch an online service aimed at high-speed users.

JC Penney(JCP Quote - Cramer on JCP - Stock Picks) gained 1/16 to 14 after it said that the head of its Eckerd division, Frank Newman, has departed to become the CEO of online drugstore more.com. Last year, JC Penney agreed to spin off 20% of its Eckerd unit as a tracking stock. The offering will take place in the fist half of 2000.

The Heard on the Street column in the Journal says biotech stocks are acting like Internet stocks, driving the biotech industry's market capitalization up 50% to $600 billion in just two months time. The story speculates that some biotech companies now have the capacity to swallow up old-line pharmaceuticals companies, though it adds no imminent deals are on the horizon.